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Shares of European automakers BMW, Volkswagen and Renault jumped on Wednesday morning after the European Union Initiated anti-subsidy investigations into Chinese electric vehicles.


Shares of European automakers BMW, Volkswagen and Renault jumped on Wednesday morning after the European Union Initiated anti-subsidy investigations into Chinese electric vehicles. European Commission President Ursula von der Leyen has announced an anti-subsidy inquiry into low-cost electric cars coming from China.

"Global markets are now flooded with cheaper Chinese electric cars. And their price is kept artificially low by huge state subsidies. This is distorting our market," von der Leyen said in her annual State of the European Union address.

Meanwhile, shares of Chinese automakers XPeng, Li-Auto and Nio slipped after the news.


UK shares turned under pressure following the release of disappointing UK economic data. US stock futures trade unchanged. On Tuesday, Wall Street's main indexes ended slightly lower on Tuesday. Moving ahead, today all eyes will be on U.S. inflation data that will feed into the Federal Reserve's next week interest rate decision.


Crude oil futures slightly reversed from the multi-month highs after IEA leaves forecast for 2023 global oil demand growth steady at 2.2 million bpd. Oil cuts by Saudi Arabia and Russia will cause a “significant” global supply shortfall through the end of the year, raising the risk of further market volatility, the International Energy Agency has said. On the other hand, the API weekly inventory data showed the US crude inventories increased by 1.174 million barrels in the week, after a 5.521 million barrels decline in the previous week.

In the currency market, the US Dollar Index, which measures the greenback’s value against the basket of six major currencies almost flat, however, today could see increased volatility spikes after the release of the CPI outcome. The CPI reading is expected to show that inflation accelerated in August from the prior month and the figures will be very crucial for the Fed ahead of next week's meeting. EURUSD sellers regain near-term control after the Eurozone Industrial output falls more than forecast, the Industrial production in the Euro Area declined by 1.1% in July.


The precious metals are struggling to regain footing after suffering steep losses in the last few trading sessions weighed down by a stronger dollar and the expectation is that FED rates are going to remain higher for longer, even if the Fed pauses the interest rate in next month's meeting. While the FED 25bps rate hike expectation increased by 20 points to 46% in November.

Economic Outlook

On the data front, UK GDP slipped by 0.5% following a 0.5% gain in June, the ONS said Wednesday. Economists had expected a contraction of 0.2%. UK production output fell by 0.7% in July after growth of 1.8% in June, largely due to a 0.8% drop in the manufacturing sector.

Moving ahead today, the important events to watch:

US – CPI: GMT – 12:30

US – EIA crude inventories: GMT – 14:30

Technical Outlook and Review

EURUSD: For today, 1.0700 remains the first immediate support level, followed by 1.0690. If the pair breaks below 1.0690, the slump will quickly extend toward the 1.0660/50 mark. On the flip side, the first resistance at 1.0750 then 1.0770.


The important levels to watch for today: Support- 1.090 and 1.0650 Resistance- 1.0750 and 1.0770.

GOLD: Technically the overall momentum remains bearish. For today, the first nearest support level is located at $1906. In case it breaks below this level, it will head towards the next support level which is located near $1900 and $1896.

gold neww

The important levels to watch for today: Support- 1900 and 1896 Resistance- 1920 and 1926.

Quote of the day “The key to trading success is emotional discipline. If intelligence were the key, there would be a lot more people making money trading… the single most important reason that people lose money in the financial markets is that they don’t cut their losses short.” Victor Sperandeo.

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The US dollar continued the advance across the board and reached the strongest levels in 10- months on speculation that the Federal Reserve would continue to raise interest rates. Technically the current price action signals suggest that a medium-term bullish trend remains intact. While the fundamental ingredients are in for the dollar to resume its rally, technicals point to overstretched to the upside.



Chinese smartphone giant Huawei is set to enter the automotive industry. The Chinese brand unveiled two new electric cars — its first sedan and a high-end SUV on Monday. The electric cars are part of a joint collaboration between Huawei and electric vehicle maker Chery.



Stocks across the globe extended the slide on Friday morning following the release of disappointing flash purchasing managers' index readings from European economies. Another factor that has negatively affected the stock market is mainly due to the Fed's signal that interest rates will remain higher for an extended period.



The British pound slipped below 1.2300 against the US dollar ahead of the Bank of England interest rate announcement. The central bank is expected to raise interest rates by another 25 basis points to 5.5% today. If the BoE raises interest rates, it will be the 15th consecutive hike.